Lawsuit claims conspiracy ousted insurance agent

A lawsuit filed in January of this year will go to court for a motion hearing on Thursday, June 24, at 10 a.m. in the Boone County Courthouse. The lawsuit involves a complaint filed by Roger Earnest, a former agent for Shelter Insurance, against Shelter Insurance companies — Shelter Mutual Insurance, Shelter Life Insurance, Shelter General Insurance, and individual defendants — a regional sales manager, Bobby Dingus; and insurance agent Matt McKinney.

The lawsuit claims that Shelter's wrongdoing is violation of the Arkansas Franchise Practices Act, that McKinney has engaged in tortious interference with contract, and that both McKinney and Dingus have engaged in civil conspiracy.

In the complaint, Earnest seeks damages under claims that the defendants wrongfully conspired to push him out of business. "This is a case about righting a wrong," says the complaint.

The introduction to the complaint describes the Earnest family's history of serving the Boone County community, particularly as Shelter agents in Harrison. The complaint states that Earnest's father became the first Shelter adjuster in Arkansas and that he was inspired by his travels with his dad on the job to follow in his footsteps.

Earnest's filing says that he became the youngest agent in Shelter's history after signing on with the agency following college and that he then spent over fifty years growing his Shelter agency into "one of the most prominent in the United States."

Earnest then claims that Shelter regional sales leader Bobby Dingus agreed to push Mr. Earnest out to make way for a new agent, Matt McKinney, to replace him.

The reason stated for Dingus doing so, according to Earnest's claim, is that "newer agents like McKinney operate under contracts with terms far more favorable to Shelter," and that Shelter has a broader national policy of ousting all its older-contract holders, like Mr. Earnest. The claim also states that the actions "satisfied a longtime personal vendetta Defendant Dingus harbored against Mr. Earnest and his agency."

The filing says that Earnest was offered no justification or notice from Shelter when he was shut down — leaving his agency's five employees abruptly unemployed. Earnest claims that such termination violated the Arkansas Franchise Practices Act.

The filing details the efforts put forth by Earnest over the course of his career which lead to a successful business — one which garnered awards and a loyal customer base. It also claims Shelter company's marketing eventually worked deliberately against him by promoting McKinney, a newer agent, to policyholders and prospects over him.

The defendants have denied the accusations and requested that the court dismiss Earnest's claim. At the hearing scheduled for Thursday, Circuit Judge Andrew Bailey will hear the defendants' motion to dismiss, as well as a motion for protective order — an order that postpones the deadline for Shelter to respond to written discovery until at least 30 days after the court rules on the motion to dismiss. Bailey will also hear a "motion for leave to file surreply" put forth by Earnest — a motion seeking to respond to subsequent motions filed by the defendants.